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https://www.barrons.com/articles/apple-pepsi-dividend-stock-investing-3516ced1
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A lawsuit filed in Delaware in April against the travel site Tripadvisor and its majority shareholder is highlighting what may be a growing trend: companies seeking to shift their incorporations to Nevada to avoid Delaware’s more stringent and entrenched legal standards.
The suit was filed on behalf of a group of Tripadvisor Inc. TRIP shareholders, who are hoping to persuade the Delaware Chancery Court to stop the company from pushing ahead with board-approved plans to reincorporate in Nevada, arguing their motive is to take…
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Moody’s Downgrades 11 Regional Banks, Including Zions, U.S. Bank, Western Alliance
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During a period of high interest rates, it might be more difficult to impress investors with dividend stocks. But the stocks can have an important advantage over the long term. The dividend payouts can increase over the years, helping to push share prices higher over time.
When considering stocks for dividend income, yield shouldn’t be the only thing you consider. If a stock’s price has tumbled because investors are worried about the company’s business prospects, the dividend yield might be very high. A double-digit yield might mean investors expect to see a cut to the dividend soon.
There are many ways to look at companies’ expected ability to maintain or raise their dividend payouts. But one can also take a simple approach to begin researching stock choices.
At the moment, you can get a bank CD with a yield of close to 5% pretty easily. Here’s a look at current yields for CDs and U.S. Treasury securities and an approach for laddering them not only to protect your cash but to hedge against interest-rate risk.
For investors who would rather aim for long-term growth to go along with dividend income, or take a relatively conservative approach to growth while reinvesting dividends, a screen of stocks in the S&P 500
SPX,
produces only 10 stocks with dividend yields of 4.5% or higher with majority “buy” or equivalent ratings among analysts polled by FactSet. Here they are, sorted by dividend yield:
| Company | Ticker | Dividend Yield | Expected payout increase through 2025 | Share “buy” ratings | April 16 price | Consensus price target | implied 12-month upside potential |
| Comerica Inc. |
CMA, |
6.56% | 10% | 58% | $43.30 | $60.53 | 40% |
| Citizens Financial Group Inc. |
CFG, |
5.77% | 12% | 74% | $29.10 | $39.29 | 35% |
| Healthpeak Properties Inc. |
PEAK, |
5.71% | 9% | 60% | $21.01 | $27.69 | 32% |
| Hasbro Inc. |
HAS, |
5.34% | 8% | 69% | $52.40 | $69.27 | 32% |
| Philip Morris International Inc. |
PM, |
5.11% | 11% | 67% | $99.48 | $113.56 | 14% |
| Realty Income Corp. |
O, |
5.04% | 7% | 56% | $60.77 | $70.00 | 15% |
| Fifth Third Bancorp |
FITB, |
4.99% | 3% | 72% | $26.44 | $34.55 | 31% |
| VICI Properties Inc. |
VICI, |
4.82% | 12% | 95% | $32.35 | $37.73 | 17% |
| Organon & Co. |
OGN, |
4.71% | 5% | 55% | $23.80 | $31.89 | 34% |
| Iron Mountain Inc. |
IRM, |
4.69% | 15% | 78% | $52.76 | $56.00 | 6% |
| Source: FactSet | |||||||
Click on the ticker for more about each company.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
The dividend yields for this group of 10 companies are based on current annual regular payout rates, with all paying quarterly except for Realty Income Corp.
O,
which pays monthly.
These two oil and natural gas producers would have passed the above screen based on their most recent dividend payments and analysts’ sentiment, however, they pay a combined fixed-plus-variable dividend every quarter, with the fixed portion relatively low:
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Have you got itchy feet?
The U.S. economy added 236,000 jobs in March, just shy of the 238,000 forecast by economists polled by the Wall Street Journal. The unemployment rate declined to 3.5% in March from 3.6% in February.
The latest data was calculated before the collapse of Silicon Valley Bank and Signature Bank last month, an event that…
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If you invest in dividend stocks, you are probably looking for long-term growth to go with the income. Otherwise you might be content to hold one-month U.S. Treasury bills, which yield 4.5% or park your money in an online savings account for a yield close to 4%.
Below is screen of stocks with current dividend yields ranging from 4.14% to 8.46%. What sets these apart from other stocks with high dividend yields is that their payout increases are expected to accelerate in 2023 and 2024 from those in 2022.
On Tuesday, S&P Dow Jones Indices said in a press release that it expected dividend payments by publicly traded U.S. companies to continue to hit record levels in 2023. But Howard Silverblatt, a senior index analyst with the firm, said that the pace of dividend increases in the first quarter had slowed and that he expected this year’s increases to be “at half the pace of the double-digit 2022 growth.”
Silverblatt also said current events in the banking industry were “expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth.”
For many banks, there’s another big item on the table. A focus on share buybacks in recent years is very likely to end — this is a use of cash that can raise earnings per share if the share count is reduced, but there can be consequences, especially after a year of rising interest rates that pushed down the market value of banks’ investments in bonds.
In a note to clients on March 16, Dick Bove, a senior research analyst with Odeon Capital, predicted that stock repurchases in the banking industry would be “meaningfully cut back if not flat out eliminated.” He made three general points about buybacks in the banking industry:
A company might find it much easier to curtail or stop buying back shares to preserve cash than it is to cut regular dividends. Preserving and increasing the dividend over time has been correlated with good performance for stocks over time. These articles provide examples of how dividend compounding is correlated with long-term growth as income streams build up:
The S&P Dow Jones Indices report raises the question of which stocks might buck the trend.
Starting with the S&P 500
SPX,
there are 71 companies stocks with current dividend yields of at least 4.00% indicated by annual payout rates. Among these companies, 68 increased dividends during 2022, according to data provided by FactSet.
Then we looked at the pace of dividend increases in 2022 and the consensus estimates for dividends paid during 2023 and 2024, among analysts polled by FactSet. Among the remaining 68 companies, there are 29 for which the estimated 2023 dividend increase is higher than the 2022 dividend increase. Narrowing further, there are 14 for which the estimated 2024 dividend increases are higher than the estimated 2023 dividend increases.
Here are the 14 stocks that passed the screen, sorted by current dividend yield:
| Company | Ticker | Dividend yield | Dividend increase – 2022 | Expected dividend increase in 2023 | Expected dividend increase in 2024 |
| Altria Group Inc. |
MO, |
8.46% | 4.5% | 4.7% | 4.9% |
| Newell Brands Inc. |
NWL, |
7.55% | 0.0% | 0.1% | 0.6% |
| Boston Properties Inc. |
BXP, |
7.42% | 0.0% | 0.7% | 1.0% |
| KeyCorp |
KEY, |
6.99% | 5.3% | 6.7% | 6.8% |
| Prudential Financial Inc. |
PRU, |
6.08% | 4.3% | 4.7% | 4.8% |
| ONEOK Inc. |
OKE, |
5.87% | 0.0% | 2.2% | 2.4% |
| Healthpeak Properties Inc. |
PEAK, |
5.54% | 0.0% | 2.1% | 2.2% |
| Dow Inc. |
DOW, |
5.16% | 0.0% | 1.1% | 2.2% |
| Iron Mountain Inc. |
IRM, |
4.70% | 0.0% | 1.8% | 5.4% |
| NRG Energy Inc. |
NRG, |
4.50% | 7.7% | 7.9% | 7.9% |
| Franklin Resources Inc. |
BEN, |
4.50% | 3.6% | 4.3% | 5.7% |
| Federal Realty Investment Trust |
FRT, |
4.38% | 0.9% | 1.7% | 2.1% |
| Ventas Inc. |
VTR, |
4.26% | 0.0% | 3.3% | 5.5% |
| Kraft Heinz Co. |
KHC, |
4.14% | 0.0% | 0.7% | 0.8% |
| Source: FactSet | |||||
Click on the ticker for more about each company.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Any stock screen is limited, but can be useful as a starting point or supplement to your own research. If you see any companies of interest, do some research to form your own opinion of how likely they are to remain competitive over the next decade, at least.
Don’t miss: This stock ETF keeps beating the S&P 500 by selecting for quality
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U.S. stocks were climbing Friday afternoon following a softer-than-expected inflation report for February, while the Nasdaq Composite was on pace for its largest quarterly advance since 2020.
For the week, the Dow is on track to gain 3% while the S&P was on pace to rise 3.2% and the Nasdaq Composite was heading for a 3.1% increase, according to FactSet data, at last check.
U.S. stocks were up sharply Friday afternoon as investors weighed data showing signs of moderating inflation.
“Core price pressures” eased in February, Barclays said in an economics research note Friday. “On balance, the easing in February PCE inflation was fairly broad-based across goods and services, barring housing.”
The personal-consumption-expenditures, or PCE, price index increased 0.3% in February, with inflation slowing to 5% year over year from 5.3% in January, according to a report Friday from the Bureau of Economic Analysis.
Core PCE, the Federal Reserve’s preferred inflation gauge that excludes energy and food prices, rose 0.3% last month for a year-over-year rate of 4.6%. That’s slightly lower than forecasts from economists polled by the Wall Street Journal and softened from the 4.7% increase seen over the 12 months through January.
Read: Inflation softens in February, PCE finds, and gives ammo for Fed rate-hike pause
While the Federal Reserve has been battling high inflation with interest rate hikes, futures traders are betting that rates have already peaked and that the Fed will likely reverse course and cut rates at least a couple of times before the end of the year, according to the CME’s FedWatch tool.
The market is pricing in a “coin flip” as to whether the Fed raises its benchmark rate by a quarter percentage point at its May policy meeting, said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co., in a phone interview Friday.
“We think we’re getting pretty close to the end” of the rate-hiking cycle, he said. Stucky expects the Fed may stop hiking once “cracks” start to form in the labor market, with job losses in “nonfarm payrolls.”
Meanwhile, consumer spending edged up 0.2% in February while personal incomes rose 0.3%, according to a Bureau of Economic Analysis report Friday.
“Incomes and spending are hanging in there and inflation’s cooling,” said Mike Skordeles, head of U.S. economics at Truist, in a phone interview Friday. “That has positive implications for markets” and the economy, he said.
Stocks traded higher following the release of the final reading on U.S. consumer sentiment for March from the University of Michigan. While confidence ticked lower compared with earlier estimates, inflation expectations moderated.
U.S. stocks have held up relatively well this quarter, shrugging off the Fed rate hikes and renewed recession fears. Since hitting its highest level of the year in early February, the S&P 500 has been trading in an increasingly narrow range, leaving analysts divided about where the market might be heading next.
“We need to see what the overall economy does,” said Kim Caughey Forrest, founder and chief investment officer of Bokeh Capital Partners. “I think GDP matters, and if GDP holds up while inflation comes down, that could be good for stocks.”
The Nasdaq Composite has risen around 16% since the start of the year, putting it on track for its best quarterly gain since the three months through June 2020, according to FactSet data, at last check. The technology -heavy Nasdaq jumped more than 30% in the second quarter of 2020 as stocks rebounded from the global market rout tied to COVID-19 that year.
The S&P 500 and Dow were also track for quarterly gains in late afternoon trading.
“The bond market is definitely more concerned about recession risks than stocks are,” said Skordeles, who is expecting a recession in the second half of the year. “They couldn’t be sending more different signals.”
Read: Two-year Treasury yields on pace for biggest monthly drop since 2008 after bank turmoil
New York Fed President John Williams said Friday in a speech at Housatonic Community College that stress in the U.S banking system will cause banks to tighten credit and probably lead to lower consumer spending.
—Steve Goldstein contributed to this article.
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Diamond Sports Group, which operates regional sports networks that televise nearly half of all MLB, NBA and NHL games, filed for Chapter 11 bankruptcy protection Tuesday.
Diamond is owned by Sinclair Broadcasting Group Inc. SBGI, and operates its networks under the Bally Sports name.
In a statement Tuesday, Diamond said it was finalizing a…
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Shares of regional banks posted big gains on Tuesday as they regained their footing after huge losses in the previous session, but volatility continued in the sector following the demise of Silicon Valley Bank, Signature Bank and Silvergate Capital in the past week.
While the rise in some cases is eye-popping, most stocks have yet to recover fully from losses in the past few days. Most stocks are trading well below their levels from a week ago, even with Tuesday’s gains.
Among…
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The Biden administration approved the large-scale and controversial Willow drilling project for ConocoPhillips on Alaska’s oil-rich North Slope on Monday.
The approval, although with some conditions, is one of President Joe Biden’s most consequential climate choices of his first administration.
It’s a blemish, say environmental groups, to…
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Trading in shares of First Republic Bank and Western Alliance Bancorp ended sharply lower in a tough day of trading for regional banks as fears over bank solvency persisted following the failures of Silicon Valley Bank, Signature Bank and Silvergate Capital.
Stocks were periodically halted or paused for trading amid the bank stock bloodbath, which saw many suffering percentage declines well into the double digits. Typically, bank stocks are stable compared with sectors such as technology, with daily moves above 5% being relatively…
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Asana Inc. on Wednesday reported and forecast narrower-than-expected losses, saying the figures reflected a firmer path to profitability, and its stock skyrocketed in after-hours trading.
The project-management software provider — whose chief executive is a co-founder of Meta Platforms Inc.’s
META,
Facebook — forecast first-quarter sales of $150 million to $151 million, with an adjusted net loss of between 18 cents and 19 cents a share. That’s better than FactSet forecasts for a 23-cent per-share loss with revenue of $150.4 million.
For the full year, Asana
ASAN,
said it expects revenue of between $638 million and $648 million, with an adjusted net loss of 55 cents to 59 cents. Analysts polled by FactSet expected a 79 cent-per-share loss, on sales of $645.8 million.
The company reported a fourth-quarter net loss of $95 million, or 44 cents a share. That compares with a loss of $90 million, or 48 cents a share, in the same quarter last year. Revenue rose 34% to $150.2 million, compared with $111.9 million in the same quarter last year.
Adjusted for stock-based compensation, restructuring and other costs, Asana lost 15 cents a share, compared with 25 cents a year earlier.
Analysts polled by FactSet expected Asana to reported an adjusted loss of 27 cents a share, on revenue of $145.1 million.
Shares soared 24% after hours.
The company reported earnings as other workplace-oriented cloud-services platforms, like Salesforce Inc.
CRM,
and Workday
WDAY,
scale back and lay off workers. The tech industry has tried to shrink, after hiring to meet digital demand brought by the pandemic that later fizzled as COVID restrictions lifted.
Shares of Asana have fallen 60% over the past two months. By comparison, the S&P 500 Index
SPX,
has lost 4.3% of its value over that period.
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Silicon Valley could use a reboot. The biggest players aren’t growing, and more than a few are seeing sharp revenue declines. Regulators seem opposed to every proposed merger, while legislators push for new rules to crack down on the internet giants. The Justice Department just can’t stop filing antitrust suits against Google. The initial public offering market is closed. Venture-capital investments are plunging, along with valuations of prepublic companies. Maybe they should try turning the whole thing on and off.
The only strategy that seems to be working is to lay people off. Tech CEOs suddenly are channeling Marie Kondo, tidying up and keeping only the people and projects that “spark joy,” or at least support decent operating margins. Layoffs.fyi reports that tech companies have laid off more than 122,000 people already this year.
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The initial version of this story had incorrect price changes for 2023. It is now updated with information as of the market close on Jan. 31.
Investors staged a January rally, with solid gains for the S&P 500 and an even better showing for technology stocks that led the dismal downward action in 2022.
This…
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These are tricky times in the stock market, so it pays to look to the best stock-fund managers for guidance on how to behave now. Veteran value investor Bill Nygren belongs in this camp, because the Oakmark Fund OAKMX he co-manages consistently and substantially outperforms its peers.
That isn’t easy, considering how many fund managers fail to do so. Nygren’s fund beats its Morningstar large-cap value index and category by more than four percentage points annualized over the past three years. It also outperforms at five and…
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European Union officials were working Wednesday to coordinate a response to China’s current surge of COVID cases and were likely to agree on travel restrictions that may upset both Beijing and airlines.
The Chinese government has already slammed the countries that have imposed a COVID test requirement on passengers from China and has threatened countermeasures if more are introduced, the Associated Press reported.
EU Commission spokesman Tim McPhie said Wednesday that most EU nations are in favor of testing prior to departure and are seeking an official position later in the day.
There are concerns that China’s wave may allow for new, potentially more evasive and risky variants of the coronavirus to emerge, although so far, data are showing the variants circulating in China are already in Europe.
See also: Isolated and humiliated, Russia is biggest geopolitical threat of 2023: Eurasia Group
On Wednesday the International Air Transport Association, which represents some 300 airlines worldwide, lent its powerful voice to the protests.
“It is extremely disappointing to see this knee-jerk reinstatement of measures that have proven ineffective over the last three years,” said IATA Director General Willie Walsh.
“Research undertaken around the arrival of the omicron variant concluded that putting barriers in the way of travel made no difference to the peak spread of infections. At most, restrictions delayed that peak by a few days,” Walsh said.
EU nations are also expected to agree to test wastewater from planes flying in from China to determine whether it contains variants that are not yet prevalent in Europe.
In the U.S., the seven-day average for new COVID cases has continued to fall and stood at 60,417 on Tuesday, according to a New York Times tracker. That’s down 10% from two weeks ago and below the recent peak of 70,508 on Christmas Eve.
The daily average for hospitalizations was up 8% to 44,504. The average for deaths was 310, down 24% from two weeks ago.
The New York Times tracker notes there is reason to believe current case and death counts could be artificially low, as the people who track those numbers take time off around the Christmas and New Year’s holidays. Hospitalization data are not typically affected by holiday reporting breaks.
The number of patients with COVID in intensive-care units rose 11% in two weeks, to 5,350. Meanwhile, the test-positivity rate climbed to 16% and has increased by 25% over the past two weeks. Higher test-positivity rates suggest many new COVID cases are not being counted, as results of at-home testing may not be reported to case trackers.
Overall, cases are currently rising in 17 states, led by Mississippi, where they have climbed 78% from two weeks ago. Measured on a per-capita basis, New Jersey and New York are faring the worst, along with several southern states, including Virginia, Mississippi and South Carolina.
Coronavirus Update: MarketWatch’s daily roundup has been curating and reporting all the latest developments every weekday since the coronavirus pandemic began
Other COVID-19 news you should know about:
• Shares of Lucira Health Inc.
LHDX,
more than quadrupled Tuesday after it submitted an application for emergency-use authorization to the U.S. Food and Drug Administration for over-the-counter use of a molecular COVID-19 and flu test, Dow Jones Newswires reported. The test was granted emergency-use authorization for point-of-care use in a healthcare setting in November. The company now “intends to make the test broadly available to consumers both online as well as in pharmacies.”
• Salesforce Inc.
CRM,
has become the latest big tech player to say it hired too aggressively during the COVID pandemic; it is now planning to lay off about 10% of its workforce, MarketWatch’s Emily Bary reported. The company will also exit some real estate and cut back on office space, it disclosed in a filing with the Securities and Exchange Commission. The plan is aimed at reducing operating costs, boosting operating margins and driving “profitable growth.” “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” the company’s co-chief executive, Marc Benioff, said in a letter to employees that was also filed with the SEC. The company had 73,541 employees as of Jan. 31, 2022, according to its last annual filing with the SEC.
Read: Here are the companies in the layoffs spotlight; Salesforce joins Intel, Google, HP, Amazon, Cisco
• Pfizer Inc.
PFE,
has gone from being a COVID darling to a “show-me” launch story, according to Bank of America analysts, who downgraded the stock to neutral from buy on Wednesday, citing declining COVID revenues and uncertainty about how new products will perform. Analysts are expecting revenue from Pfizer’s COVID vaccine Comirnaty and its antiviral Paxlovid to decline by about $32 billion from 2022, wider than the consensus number of a decline of $25 billion. “While new launches can partially address the $17 billion LOE (loss of exclusivity) hole in 2025 to 2030, longer term growth is unclear,” the analysts wrote in a note to clients.
Here’s what the numbers say:
The global tally of confirmed cases of COVID-19 topped 666.8 million on Tuesday, while the death toll rose above 6.69 million, according to data aggregated by Johns Hopkins University.
The U.S. leads the world with 100.8 million cases and 1,094,010 fatalities.
The Centers for Disease Control and Prevention’s tracker shows that 229.1 million people living in the U.S., equal to 69% of the total population, are fully vaccinated, meaning they have had their primary shots.
So far, just 47 million Americans have had the updated COVID booster that targets the original virus and the omicron variants, equal to 15.1% of the overall population.
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This article is an excerpt from “Here Are Barron’s 10 Top Stocks for the New Year,” published on Dec. 16, 2022. To see the full list, click here.
With home builder
Toll Brothers
‘ stock down 30% this year, it might look like the roof is caving in. But that’s probably not the case. Yes, mortgage rates have doubled, but Toll (ticker: TOL), the top luxury home builder, is more insulated than its peers, due to the affluent buyers of its homes, which sell for an average of about $1 million. About 20% of Toll buyers pay cash, and many are selling homes for a lot more than they paid for them.
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These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. The reports are a sampling of analysts’ thinking; they should not be considered the views or recommendations of Barron’s. Some of the reports’ issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed.
Advanced Micro Devices AMD-Nasdaq
Buy (four stars out of five) • Price $64.52 on Dec. 23
by CFRA
Our Buy recommendation reflects our expectation for significant share gains on the central-processing-unit data-center side from the ramp-up of AMD’s next-generation EPYC processor, greater momentum for AMD’s graphics processing units, and our expectation for balance sheet improvement.
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This has been the year of reckoning for Big Tech stocks — even those of companies that have continued to grow sales by double digits.
Below is a list of the 20 stocks in the S&P 500
SPX,
that have declined the most in 2022.
First, here’s how the 11 sectors of the benchmark index have performed this year:
| S&P 500 sector | 2022 price change | Forward P/E | Forward P/E as of Dec. 31, 2021 |
| Energy | 57.8% | 9.6 | 11.1 |
| Utilities | -0.5% | 18.8 | 20.4 |
| Consumer Staples | -2.7% | 20.9 | 21.8 |
| Healthcare | -3.2% | 17.4 | 17.2 |
| Industrials | -6.7% | 18.0 | 20.8 |
| Financials | -12.1% | 11.7 | 14.6 |
| Materials | -13.4% | 15.6 | 16.6 |
| Real Estate | -27.7% | 16.2 | 24.2 |
| Information Technology | -28.8% | 19.6 | 28.1 |
| Consumer Discretionary | -37.4% | 20.7 | 33.2 |
| Communication Services | -40.4% | 14.0 | 20.8 |
| S&P 500 | -19.2% | 16.5 | 21.4 |
| Source: FactSet | |||
The energy sector has been the only one to show a gain in 2022, and it has been a whopper, even as West Texas Intermediate crude oil
CL.1,
has given up most of its gains from earlier in the year. Here’s why investors are still confident in the supply/demand setup for oil and energy stocks.
Looking at the worst-performing sectors, you might wonder why the consumer discretionary and communication services sectors have fared worse than information-technology, the core tech sector. One reason is that S&P Dow Jones Indices can surprise investors with its sector choices. The consumer discretionary sector includes Tesla Inc.
TSLA,
and Amazon.com Inc.
AMZN,
which has fallen nearly 50% this year. The communications sector includes Meta Platforms Inc.
META,
along with Match Group Inc.
MTCH,
which is down 69% for 2022, and Netflix Inc.
NFLX,
which is down 52% this year.
There have been many reasons easy to cite for Big Tech’s decline, such as a questionable change in strategy for Facebook’s holding company, Meta, as CEO Mark Zuckerberg has put so much of the company’s resources into developing a new world that most people don’t wish to enter, at least yet. Meta’s shares were down 64% for 2022 through Dec. 29.
You might also blame the Twitter-related antics and sales of Tesla shares by CEO Elon Musk for the 65% decline in the electric-vehicle maker’s stock this year. But Tesla had a forward price-to-earnings ratio of 120.3 at the end of 2021, while the S&P 500
SPX,
traded for 21.4 times its weighted forward earnings estimate, according to FactSet. Those P/E ratios have now declined to 21.7 and 16.4, respectively. So Tesla no longer appears to be a very expensive stock, especially for a company that increased its vehicle deliveries by 42% in the third quarter from a year earlier.
Analysts polled by FactSet expect Tesla’s stock to double during 2023. It nearly made this list of 20 EV stocks expected to rebound the most in 2023.
Here are the 20 stocks in the S&P 500 that fell the most for 2022 through the close on Dec. 29.
| Company | Ticker | 2022 price change | Forward P/E | Forward P/E as of Dec. 32, 2021 |
| Generac Holdings Inc. |
GNRC, |
-71.4% | 13.7 | 30.2 |
| Match Group Inc. |
MTCH, |
-68.9% | 20.1 | 48.5 |
| Align Technology Inc. |
ALGN, |
-67.7% | 27.4 | 48.7 |
| Tesla Inc. |
TSLA, |
-65.4% | 21.7 | 120.3 |
| SVB Financial Group |
SIVB, |
-65.4% | 10.8 | 23.0 |
| Catalent Inc. |
CTLT, |
-64.6% | 13.0 | 32.5 |
| Meta Platforms Inc. Class A |
META, |
-64.2% | 14.7 | 23.5 |
| Signature Bank |
SBNY, |
-64.1% | 6.2 | 18.6 |
| PayPal Holdings Inc. |
PYPL, |
-62.6% | 14.8 | 36.0 |
| V.F. Corp. |
VFC, |
-62.5% | 11.9 | 20.4 |
| Warner Bros. Discovery Inc. Series A |
WBD, |
-59.9% | N/A | 7.5 |
| Carnival Corp. |
CCL, |
-59.8% | 38.1 | N/A |
| Stanley Black & Decker Inc. |
SWK, |
-59.8% | 17.0 | 15.9 |
| Lumen Technologies Inc. |
LUMN, |
-57.8% | 7.7 | 7.8 |
| Zebra Technologies Corp. Class A |
ZBRA, |
-56.7% | 14.5 | 30.1 |
| Dish Network Corp. Class A |
DISH, |
-56.5% | 8.6 | 10.9 |
| Caesars Entertainment Inc. |
CZR, |
-55.7% | 51.4 | 144.5 |
| Lincoln National Corp. |
LNC, |
-55.1% | 3.4 | 6.2 |
| Advanced Micro Devices Inc. |
AMD, |
-55.0% | 17.8 | 43.1 |
| Seagate Technology Holdings PLC |
STX, |
-53.1% | 15.0 | 12.4 |
| Source: FactSet | ||||
Click on the tickers for more information about the companies.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
It is one thing to have a large decline based on the share price, but that doesn’t tell the entire story. How much of a decline have investors seen in the holdings of their shares during the year? The S&P 500’s total market capitalization declined to $31.66 trillion as of Dec. 28 (the most recent figure available) from $40.36 trillion at the end of 2021, according to FactSet.
Shareholders of these companies have suffered the largest declines in market cap during 2022.
| Company | Ticker | 2022 market capitalization change ($bil) | 2022 price change |
| Apple Inc. |
AAPL, |
-$851 | -27.0% |
| Amazon.com Inc. |
AMZN, |
-$832 | -49.5% |
| Microsoft Corp. |
MSFT, |
-$728 | -28.3% |
| Tesla Inc. |
TSLA, |
-$677 | -65.4% |
| Meta Platforms Inc. Class A |
META, |
-$465 | -64.2% |
| Nvidia Corp. |
NVDA, |
-$376 | -50.3% |
| PayPal Holdings Inc. |
PYPL, |
-$141 | -62.6% |
| Netflix Inc. |
NFLX, |
-$138 | -51.7% |
| Walt Disney Co. |
DIS, |
-$123 | -43.7% |
| Salesforce Inc. |
CRM, |
-$118 | -47.8% |
| Source: FactSet | |||
So there is your surprise for today: Apple is this year’s biggest stock-market loser.
Don’t miss: Best stock picks for 2023: Here are Wall Street analysts’ most heavily favored choices
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Even during a year in which the S&P 500 index declined 19%, with 72% of its stocks in the red, there were plenty of winners.
Before showing you the list of the best performers in the benchmark index, let’s look at a preview: Here’s how the 11 sectors of the S&P 500
SPX,
performed for the year:
| Index | 2022 price change | Forward P/E | Forward P/E as of Dec. 31, 2021 |
| Energy | 59.0% | 9.7 | 11.1 |
| Utilities | -1.4% | 18.9 | 20.4 |
| Consumer Staples | -3.2% | 21.0 | 21.8 |
| Health Care | -3.6% | 17.6 | 17.2 |
| Industrials | -7.1% | 18.3 | 20.8 |
| Financials | -12.4% | 11.9 | 14.6 |
| Materials | -14.1% | 15.8 | 16.6 |
| Real Estate | -28.4% | 16.5 | 24.2 |
| Information Technology | -28.9% | 20.1 | 28.1 |
| Consumer Discretionary | -37.6% | 21.3 | 33.2 |
| Communication Services | -40.4% | 14.3 | 20.8 |
| S&P 500 | -19.4% | 16.8 | 21.4 |
| Source: FactSet | |||
Maybe you aren’t surprised to see that the energy sector was the only one to increase during 2022. But it might surprise you to see that despite the sector’s weighted price increase of 59%, its forward price-to-earnings ratio declined and remains very low relative to all other sectors.
It might also surprise you that West Texas Intermediate crude oil
CL.1,
gave up most of its gains from earlier in the year:
The reason investors are still confident in energy stocks is that oil producers have remained cautious when it comes to capital spending. They don’t want to increase supply enough to cause prices to crash, as they did in the run-up to the summer of 2014, after which prices fell steadily through early 2016, causing bankruptcies and consolidation in the industry.
Now the oil companies are focusing on maintaining supply, raising dividends and buying back shares, as Occidental Petroleum Corp.’s
OXY,
chief executive explained in a recent interview with Matt Peterson. Click here for more about Occidental and the long-term supply/demand outlook for oil.
Here are the 20 stocks in the benchmark index that rose most during 2022, excluding dividends. Proving that there are always exceptions, not all of them are in the energy sector.
| Company | Ticker | Sector | Industry | 2022 price change |
| Occidental Petroleum Corp. |
OXY, |
Energy | Oil & Gas Production | 117.3% |
| Hess Corp. |
HES, |
Energy | Oil & Gas Production | 91.6% |
| Marathon Petroleum Corp. |
MPC, |
Energy | Oil Refining/ Marketing | 81.9% |
| Exxon Mobil Corp. |
XOM, |
Energy | Integrated Oil | 80.3% |
| Schlumberger Ltd. |
SLB, |
Energy | Contract Drilling | 78.5% |
| APA Corp. |
APA, |
Energy | Integrated Oil | 73.6% |
| Halliburton Co. |
HAL, |
Energy | Oil & Gas Production | 72.1% |
| First Solar Inc. |
FSLR, |
Information Technology | Semiconductors | 71.9% |
| Valero Energy Corp. |
VLO, |
Energy | Oil Refining/ Marketing | 68.9% |
| Marathon Oil Corp. |
MRO, |
Energy | Oil & Gas Production | 64.9% |
| ConocoPhillips |
COP, |
Energy | Oil & Gas Production | 63.5% |
| Steel Dynamics Inc. |
STLD, |
Materials | Steel | 57.4% |
| EQT Corp. |
EQT, |
Energy | Oil & Gas Production | 55.1% |
| Chevron Corp. |
CVX, |
Energy | Integrated Oil | 53.0% |
| McKesson Corp. |
MCK, |
Health Care | Medical Distributors | 50.9% |
| Cardinal Health Inc. |
CAH, |
Health Care | Medical Distributors | 49.3% |
| EOG Resources Inc. |
EOG, |
Energy | Oil & Gas Production | 45.8% |
| Enphase Energy Inc. |
ENPH, |
Information Technology | Semiconductors | 44.8% |
| Merck & Co. Inc. |
MRK, |
Health Care | Pharmaceuticals | 44.8% |
| Cigna Corp. |
CI, |
Health Care | Managed Health Care | 44.3% |
| Source: FactSet | ||||
Click on the tickers for more information about the companies.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Don’t Miss: These 20 stocks were the biggest losers of 2022
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